Stock markets react to Trump’s signals from Davos: details
21 January 22:09
After three months of record sales, US markets rose sharply on Wednesday, January 21, as investors reacted positively to Donald Trump’s signal that the issue of Greenland would not be considered in terms of force.
This was reported by Reuters, according to "Komersant Ukrainian".
Addressing world leaders in Davos, Switzerland, Trump said he rejected military action but insisted that no country other than the US could guarantee the security of the Danish territory, which he repeatedly referred to as a “big piece of ice.”
“One of the reasons why the market is rebounding is that Trump has emphasized that he does not intend to use force to take Greenland and that he wants to do it diplomatically,” said Damian McIntyre, head of the multi-asset solutions team at Federated Hermes.
“Overall, we expect this to continue, but ultimately lead to a more diplomatic solution.”
The rebound came after Tuesday’s slump, when all three major US indices fell nearly 2% after Trump’s warning that new tariffs could hit European allies if the US is not allowed to buy Greenland.
The CBOE Volatility Index (.VIX) fell from its mid-November highs, which it hit in the previous session: down 2.43 points to 17.59.
Shares of megacaps, which were at the epicenter of the sell-off, gradually rose. Nvidia added 2.6%, Alphabet — 3%.
At the same time, Netflix fell 4.5% after the streaming giant suspended its share buyback program to help finance the purchase of Warner Bros Discovery’s studio and streaming business.
Apart from the “defensive” sectors — consumer staples and utilities — all other S&P 500 subsectors were in the green.
The Dow Jones Industrial Average rose 440.45 points (0.91%) to 48,929.04; The S&P 500 added 67.95 points (1.00%) to 6,864.81; The Nasdaq Composite rose 266.11 points (1.16%) to 23,220.43.
